British bank Barclays maintained its bullish stance on Chinese tech giant Alibaba (BABA) today, while CNBC commentator and professional investor Steve Weiss reported that he had recently bought more shares of Taiwan Semi (TSM).
Why Barclays Remains Upbeat on BABA
Barclays noted that the growth of BABA’s cloud business is accelerating, and the bank predicts that the unit will continue to expand for the rest of the year.
Moreover, in light of the company’s efforts to sell AI-related services to its customers, the margins of its cloud unit are likely to climb going forward, according to Barclays. Also importantly, BABA will probably benefit from the evolution of AI to inference and Edge AI, the bank believes.
Contending that the value of BABA’s cloud unit, which generates annual EBITDA of $2 billion, is not reflected in its shares, Barclays kept a $180 price target and an Outperform rating on the stock.
Why Steve Weiss Bought More TSM Stock
Weiss, the Chief Investment Officer and Managing Partner of Short Hills Capital Partners, believes that the stock’s valuation is attractive.
When TSM has a price-earnings ratio of 14 times, “you have to buy the stock,” he said.
Additionally, he thinks that the U.S. cannot prevent any computer chips from entering the country.
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This article is originally published at Insider Monkey.
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